Royal London Sustainable Diversified Trust Class C Inc

Mixed Asset 41-60% Equity

Rated Fund 2017-20. Strong ethical stance has not harmed performance        

This great ‘quick-start’ fund for ethically minded investors was named Money Observer’s Best Mixed Asset Lower Risk fund in 2019, when Morningstar initiated coverage with an analyst rating of bronze and upgraded its sustainability rating to high. The fund is proof that sustainable investing doesn’t only benefit society – investors can profit too. At the end of 2019 the fund was sector leader over one, three and five years.

Managers Mike Fox, on the equity side, and Richard Nelson, on the fixed-income side, invest in companies with products or services that align with their core themes of care for the environment, human welfare and sustainability. The focus is on companies that lead their industries in environmental, social and governance (ESG) performance, as assessed by Royal London’s analysts. Fox and Nelson aim to integrate ESG considerations alongside financial analysis throughout the investment process.

Every holding in the fund has to meet key criteria, and the management team actively engages with investee companies to champion best practice and challenge them on ESG issues. An exclusion policy focuses on avoiding companies believed to expose investors to unacceptable financial risk resulting from poor management of ESG factors.

Fox’s valuation-driven stock selection aims to identify mispriced opportunities. The fund had 60% of assets invested in the UK, 17% in the US and a smaller allocation in continental Europe at the end of 2019.

Narrative and ratings content all as of 01 January 2020.

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Name
Royal London Sustainable Diversified Trust Class C Inc
Manager
RLUM Limited
Type
Unit Trust
ISIN
GB00B844WJ68
Sector
Mixed Investment 20-60% Shares
Launched
26/11/2012
OCF
0.77 %
Risk Rating
3
3 Year Sharpe
0.87
3 Year Alpha
3.84
Yield
1.3 %
Benchmark
IA Mixed Investment 20-60%Shares
The fund seeks to provide capital growth from a diverse range of asset classes, for example equities, fixed income, property-related investments and cash, mainly in the United Kingdom. The Trust invests mainly in UK equities and fixed income securities, e.g. corporate and government bonds. Asset allocation will be used to manage risk within the fund in order to deliver improved returns. The fund may also invest in any other asset classes (including derivatives and forward transactions, approved money-market instruments, deposits, units in collective investment schemes and property-related investments).
Holding %
Rentokil Initial PLC 2.37 %
SSE PLC 2.30 %
Sage Group (The) PLC 2.19 %
London Stock Exchange Group PLC 2.04 %
AstraZeneca PLC 1.99 %
Microsoft Corp 1.98 %
RELX PLC 1.96 %
Experian PLC 1.89 %
Roche Holding AG Dividend Right Cert. 1.87 %
Agilent Technologies Inc 1.64 %
Region %
United Kingdom 45.93 %
United States 36.50 %
Europe - ex Euro 9.50 %
Eurozone 8.07 %
Sector %
Healthcare 23.58 %
Technology 18.36 %
Industrials 15.42 %
Consumer Cyclical 8.91 %
Financial Services 7.64 %
Utilities 7.24 %
Communication Services 5.89 %
Real Estate 5.25 %
Name
RLUM Limited
Address
United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Mike Fox
Joined 11/26/2012

Mike is investment manager of the CIS Sustainable Leaders Trust and has been doing this job since November 2003. Mike selects, from the list of companies meeting the criteria of the Trust, the companies most likely to provide strong investment performance.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.